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COMMUNICATION FROM THE COMMISSION Guidelines for national courts on how to estimate the share of overcharge which was passed on to the indirect purchaser · European Union

| (174) | As explained above in paragraphs 52 and 53, a firm's incentive to pass on an overcharge to its purchasers is determined by the type of demand and costs concerned (117). According to economic theory, a firm will adjust prices only where this will increase profits. However, in order to receive a higher price, a firm will usually have to accept reduced sales. The assessment of the trade-off between increased profit from higher prices and decreased profit from reduced sales is important to understand the extent of the passing-on effects in damages actions.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.